Forex Flash: EUR/JPY with scope for 127.93 after consolidation - Commerzbank

The EUR/USD was seen soaring into 33 month highs above its interim target of the 123.00/33 (2011 high and 38.2% retracement of the move down from 2008). “This break has introduced scope to the next resistance at 127.93 the April 2010 high”, wrote analyst Karen Jones, allowing for some consolidation as the market attempts to absorb these sharp moves.

“Dips lower will find initial support at the 6 week uptrend at 119.74 and this is reinforced by the 2 month uptrend at 117.69, while this holds an upside bias persists”, Jones said, pointing to the 240 minute cloud at 119.96/121.10, which has under pinned since November 14th.